TMC The Metals Company (TMC -1.72%) stock suffered a big pullback last week in conjunction with geopolitical developments. The seabed-mining specialist's share price fell 24.8% across the stretch.
TMC stock got hit with big sell-offs last week in response to news that the U.S. had lifted technology export restrictions preventing high-performance semiconductors and chip manufacturing equipment from being sold to China. While developments that could help facilitate a trade agreement between the U.S. and China have often been bullish catalysts for the broader market, TMC's outlook could actually be better if relations between the two countries remain more adversarial.
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TMC stock sank on China export news
News hit on July 28 that the Trump administration had lifted license requirements that prevented artificial intelligence (AI) processors and semiconductor manufacturing equipment from being sold to China. The move came as part of an effort to advance negotiations for a trade agreement with China. Notably, the U.S. is making continued access to China's rare earth minerals a key pillar of what it's aiming to receive in a trade deal -- and the dynamic has substantial implications for TMC stock.
Despite the big pullback, TMC stock is still up 424% across 2025's trading -- and the importance that the Trump administration has placed on improving the United States' mineral sourcing capabilities has been central to the rally. A trade agreement between the U.S. and China has the potential to weaken the company's growth outlook, but there's still a lot of uncertainty as to how things will play out on that front.
What's next for TMC?
In April, President Donald Trump signed an executive order to accelerate permitting processes needed to advance seabed mining in the U.S., and TMC submitted several permit applications just a few days later. While a trade agreement with China could take some of the urgency out of paving the way for TMC and other players in the seabed mining space to scale their operations, there's a good chance that improving domestic mineral sourcing capabilities will continue to be a national priority.
